Gambling in Texas

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Legal forms of gambling in the U.S. state of Texas include the Texas Lottery; parimutuel wagering on horse and greyhound racing; charitable bingo, pull-tabs, and raffles; and one Indian casino.

Lottery[edit]

A drawing being held at the Texas Lottery's television studio
Main article: Texas Lottery

The Texas Lottery, begun in 1992,[1] offers scratch-off and drawing games, including the multi-jurisdiction Mega Millions and Powerball games.

Charitable gaming[edit]

A charitable bingo hall in Irving

Bingo[edit]

Non-profit organizations and other community groups may operate bingo games and sell pull-tabs (referred to as "Instant Bingo"), with a license from the Charitable Bingo Operations Division of the Texas Lottery Commission. Bingo sessions are limited to three per week, with a maximum prize value of $750 for a single game. Local referendums, required to allow bingo, have passed in 226 of the state's 254 counties. As of 2011, there were 1,227 organizations authorized to conduct bingo, and they awarded $533 million in prizes.[2]

Raffles[edit]

Qualified organizations can hold up to two raffles per year with non-cash prizes. Prize value may not exceed $50,000 (or $250,000 if the prize is a house), unless the prize is donated to the organization.[3]

The Legislature in 1971 exempted charities from the state's anti-lottery statute, but the act was struck down in 1973 by the Texas Court of Criminal Appeals, which ruled that it violated the state constitution's requirement for a ban on lotteries.[4] Voters approved a constitutional amendment allowing raffles in 1989,[5] and enabling legislation went into effect at the beginning of 1990.[6]

Parimutuel wagering[edit]

Horses start out of the gate at Lone Star Park

Parimutuel wagering is allowed at horse and greyhound tracks, overseen by the Texas Racing Commission.

Class 1 horse tracks can be granted an unlimited number of racing days.[7] Up to three are allowed, in the state's three largest metropolitan areas.[7] They are: Lone Star Park in Grand Prairie, Retama Park in Selma, and Sam Houston Race Park in Houston.[8] Class 2 tracks can be granted a maximum of 60 racing days per year.[7] Several class 2 tracks are under development, but none are currently operating.[8] Class 3 licenses are issued to county or nonprofit fairs, and allow 16 racing days at most.[7] The only current class 3 license is held by the Gillespie County Fair in Fredericksburg.[8] Class 4 licenses, of which there are currently none,[8] are issued to county fairs and allow 5 racing days.[7]

The law allows for up to three greyhound tracks in the coastal counties of Cameron, Galveston, and Nueces.[9][10] The licensed tracks are Gulf Coast Racing in Corpus Christi, Gulf Greyhound Park in La Marque, and Valley Race Park in Harlingen.[8] Since 2010, with the greyhound industry on the decline, racing has been held primarily at Gulf Greyhound Park, with the other two tracks focusing on simulcast betting and offering few to zero live race days.[11][12]

Texas first legalized parimutuel betting in 1933 as a way to raise revenue during the Great Depression.[13] Four major tracks operated in the state, until 1937, when betting was banned again at a special legislative session called by Governor James Allred.[13]

In 1960, gambler Virgil "Red" Berry was elected to the Texas House of Representatives on a pro-parimutuel platform.[14] His efforts made little headway, and in protest, he proposed in 1969 to split the state in two, with horse betting legal in South Texas.[15] Nonbinding statewide referenda to revive parimutuel betting were defeated in 1962,[16] 1968,[17] 1974,[18] and 1978,[19] with opposition led largely by Baptist churches.[20] A poll on the Republican primary ballot in 1982 found majority support for betting.[21] Finally, in 1987, Texas voters approved a referendum legalizing parimutuel wagering again and creating the Texas Racing Commission, with a local election required in any county to allow a track.[22] Simulcast wagering at tracks was legalized in 1991.[23]

Indian gaming[edit]

Kickapoo Lucky Eagle Casino in Eagle Pass, the only casino in Texas

The Kickapoo Traditional Tribe of Texas operates the Kickapoo Lucky Eagle Casino in Eagle Pass. Texas's two other federally recognized tribes, the Ysleta del Sur Pueblo (the Tigua tribe) and the Alabama-Coushatta Tribe, each previously operated a casino, but both were closed in 2002 by court order.[24] The fight was later brought into the national spotlight by the Jack Abramoff Indian lobbying scandal.

In the 1980s, court decisions and the Indian Gaming Regulatory Act (IGRA) established the rights of Indian tribes to operate any kind of gambling permitted elsewhere in the state. Taking advantage of the legality of bingo in Texas, the Tiguas opened their Speaking Rock high-stakes bingo hall in 1993.[25] Over the following year, its offerings expanded to include poker[26] and "Tigua 21", a non-banking variant of blackjack.[27] The Tiguas sought a compact with the state under the IGRA to allow casino-style, or "class 3" gaming, citing the state's acceptance of a lottery and parimutuel betting, but the state refused to negotiate.[28] Courts sided with Texas, ruling that the Restoration Act that gave federal recognition to the Tiguas and Alabama-Coushatta in 1987 specifically forbade gambling, and took precedence over the IGRA.[29]

Despite the ruling, neither federal nor state authorities tried to close the casino,[30] and the tribe expanded operations further by adding slot machines in 1996.[31] Republican Governor George W. Bush asked Attorney General Dan Morales in 1998 to take legal action, but Morales, a Democrat, said that responsibility laid with local and federal officials.[30][32] Morales was succeeded in 1999, however, by Republican John Cornyn, who proceeded with a federal lawsuit against the tribe.[33] The suit was successful, and the Speaking Rock Casino closed its doors in February 2002.[34]

The Kickapoo casino opened in 1996, offering bingo, poker, its own blackjack variant, and electronic pull-tab dispensers designed to look and operate like slot machines.[35] Bush questioned the legality of these "Lucky Tab II" machines at the same time as he was pushing for action against the Tigua casino, so the tribe filed a preemptive lawsuit,[36] and won a ruling that they qualified as class 2 devices.[37] The original facility, constructed of modular buildings, was replaced in October 2004 with a new 100,000-square-foot (9,300 m2) casino and an arena.[38]

The Alabama-Coushatta Tribe had voted against gambling operations in 1994 on moral grounds,[39] but it reversed that decision in 1999 after seeing the success of the Grand Casino Coushatta, run by a related tribe in Louisiana.[40] The tribe opened its "Entertainment Center" in November 2001,[41] with slots, blackjack, and poker,[42] even as the Tiguas were appealing their loss in court.[43] Cornyn filed suit against the Alabama-Coushatta two months later, citing the Restoration Act.[44] Courts sided with Cornyn, and the casino was closed in July 2002.[45]

Eight-liners[edit]

"Game rooms" throughout the state feature slot machine-like devices commonly called "eight-liners". The machines are legal if they offer only non-cash prizes valued at less than $5,[46] but law enforcement officials say that illegal cash payouts are near universal.[47] Enforcement of existing laws regarding the machines has been inconsistent, and legislative efforts to ban them have failed.[48]

EIght-liners began to proliferate following passage of the 1993 "fuzzy animal law", which was intended to clarify that carnival games at the State Fair were legal.[49]

Casino cruises[edit]

The Texas Treasure casino ship, seen in Port Aransas in 2007

Gambling boats have operated at times out of Texas ports, taking passengers on one-day "cruises to nowhere" in international waters, where there are no gambling laws.

The casino cruise industry developed in other states in the early 1980s, but was a latecomer to Texas because of a state law prohibiting the docking of ships with gambling equipment unless they first stopped at a foreign port of call.[50] The first such operation in the state was Le Mistral, which began sailing out of Port Isabel in 1988, nominally to the Mexican village of Mezquital, though it typically did not approach within a mile of the port.[51] Le Mistral was closed by bankruptcy in 1992.[52]

Galveston officials pushed for a repeal of the foreign port of call requirement,[53] succeeding in 1989.[54] Two casino ships, the Pride of Mississippi and the Europa Jet, began operations out of the Port of Galveston later that year.[55][56] The Europa Jet ran into financial problems and left for Mississippi in September 1990.[57][58] Another boat, the Sea Palace, began offering cruises out of the Port of Freeport in January 1991,[59] but both it and the Pride closed for business in April, after federal prosecutors said they would enforce a 1948 law requiring gambling ships to visit a foreign port or sail for at least 24 hours.[60][61]

Casino cruises returned to Galveston in November 1993 with the Star of Texas,[62] which gained the blessing of the U.S. attorney's office by devoting less than half of its space to casinos, and emphasizing non-gaming activities.[63] The business failed in November 1994, and the ship was moved to Miami.[64][65]

Two new gambling boat ventures began in the Brownsville area in the fall of 1999: Casino Del Mar on the Island Dawn, sailing out of Port Isabel; and Casino Padre on the Entertainer, out of South Padre Island.[66][67] Casino Del Mar failed in January 2000, but then moved to Port Aransas under new management as the Texas Treasure.[66] Casino Padre ceased operations in November 2000.[67]

In 2001, three casino boats were launched along the upper Texas coast. The Talisman, out of Galveston, set off in April, but lasted only a month.[68] The Surfside Princess began excursions from Freeport in June, but in October was seized by its owner for failure to pay charter fees.[69] The operators of the Port Aransas boat expanded to Freeport in November with the Texas Treasure II.[70] It lasted until February 2002, when it was moved to Port Aransas on a temporary basis to substitute for the under-repair Texas Treasure;[71] instead of returning to Freeport, it was then moved to Palm Beach, Florida.[72]

The first Texas Treasure moved to Palm Beach in October 2002, replacing its sister ship;[73] for lack of business, it returned to Port Aransas a year later.[74] It continued sailing until May 2008, when it closed for routine maintenance; after a legal dispute between its operator and its owner, it never returned to service.[75]

See also[edit]

References[edit]

  1. ^ William Randy Bobbitt (2007). Lottery Wars: Case Studies in Bible Belt Politics, 1986-2005. Lexington Books. p. 43. ISBN 978-0-7391-1738-5. 
  2. ^ Texas Lottery Commission (April 20, 2012). "Bingo for Beginners: An overview of Charitable Bingo in Texas". Retrieved 2013-01-21. 
  3. ^ Attorney General of Texas (December 9, 2010). "Charities & Nonprofits: Charitable Raffles". Retrieved 2013-02-03. 
  4. ^ "Recent Developments — Constitutional Law — The Texas Legislature may not exempt churches or other nonprofit, charitable organizations from Texas's anti-lottery statute". Houston Law Review 10: 1185–1187. 1972–1973. Retrieved 2013-02-03. 
  5. ^ Bruce Hight (November 8, 1989). "$400 million for prisons approved". Austin American-Statesman.   – via NewsBank (subscription required)
  6. ^ "26 new state laws take effect". Victoria Advocate. AP. January 3, 1990. 
  7. ^ a b c d e "Texas Racing Act, Sec. 6.02. Classification of Horse-Racing Tracks". Texas Racing Commission. Retrieved 2013-01-26. 
  8. ^ a b c d e Texas Racing Commission. "Racetracks". Retrieved 2013-01-21. 
  9. ^ Bill Coulter; Rich Burk (December 12, 1989). "Panel urges cut in state's racetrack take". Houston Chronicle.   – via NewsBank (subscription required)
  10. ^ "Texas Racing Act, Sec. 6.14. Racing Restricted to Designated Place". Texas Racing Commission. Retrieved 2013-01-26. 
  11. ^ "Gulf Greyhound to be only track with live racing". Galveston County Daily News. September 18, 2009.   – via NewsBank (subscription required)
  12. ^ Michael A. Smith (July 31, 2011). "Commission looks to race tracks to recoup money". Galveston County Daily News. Retrieved 2013-01-26. 
  13. ^ a b Julie Domel (August 19, 2010). "From the Vault: Betting on horse racing made illegal in Texas in 1937…again.". San Antonio Express-News. Retrieved 2013-01-25. 
  14. ^ Henry E. Catto (1998). Ambassadors at Sea: The High and Low Adventures of a Diplomat. University of Texas Press. pp. 9–10. ISBN 978-0-292-71212-6. 
  15. ^ Anne Dingus (October 1981). "The failures that made Texas". Texas Monthly. p. 155. 
  16. ^ Tom Wicker (May 7, 1962). "Connally faces run-off in Texas". New York Times.   – via ProQuest (subscription required)
  17. ^ "Turf betting gets 'no' vote in Texas". Los Angeles Times. UPI. May 7, 1968.   – via ProQuest (subscription required)
  18. ^ "Briscoe, Patman win in primaries". Washington Post. AP. May 6, 1974.   – via ProQuest (subscription required)
  19. ^ Gerald Strine (June 4, 1978). "A Texas-sized fight over betting". Washington Post.   – via ProQuest (subscription required)
  20. ^ Norm Hitzges (April 1, 1978). "The Baptists' last stand". D Magazine (Dallas, TX). Retrieved 2013-01-28. 
  21. ^ Denise Melinsky (October 3, 1982). "Texas horsemen clamoring to follow Oklahoma back to betting window". Daily Oklahoman.   – via NewsBank (subscription required)
  22. ^ Michael Holmes (November 5, 1987). "Texans approve race-track gambling". Lexington Herald-Leader. AP.   – via NewsBank (subscription required)
  23. ^ John Gonzalez (June 12, 1991). "Lower tax on racing bets clears legislative finish line". Fort Worth Star-Telegram.   – via NewsBank (subscription required)
  24. ^ Janet Elliott (July 12, 2004). "School funding plan could legalize Indian casino". Houston Chronicle. Retrieved 2013-01-21. 
  25. ^ James E. Garcia (November 24, 1993). "Tiguas open hall amid bigger dreams". Austin American-Statesman.   – via NewsBank (subscription required)
  26. ^ "DA reviews tribe's poker games". Dallas Morning News. AP. June 8, 1994.   – via NewsBank (subscription required)
  27. ^ Suzanne Gamboa (September 3, 1994). "Tigua tribe is banking on blackjack profits". Austin American-Statesman.   – via NewsBank (subscription required)
  28. ^ Maggie Rivas (November 15, 1993). "Casino plans excite Tiguas, El Paso". Dallas Morning News.   – via NewsBank (subscription required)
  29. ^ Amy Head (2002-03). "Death of the New Buffalo: The Fifth Circuit Slays Indian Gaming in Texas". Texas Tech Law Review 34: 377–423. Retrieved 2013-01-29. 
  30. ^ a b Christina Pino-Marina (July 28, 1999). "Attorney general to press Speaking Rock inquiry". El Paso Times.   – via NewsBank (subscription required)
  31. ^ "Tribe's slot machines may be illegal". Fort Worth Star-Telegram. AP. December 4, 1996.   – via NewsBank (subscription required)
  32. ^ Jay Root (May 26, 1998). "Bush's action against Indian casino causes political tumult". Fort Worth Star-Telegram.   – via NewsBank (subscription required)
  33. ^ Ken Herman (September 28, 1999). "State sues to close Tigua tribe casino". Austin American-Statesman.   – via NewsBank (subscription required)
  34. ^ Dan J. Williams (February 12, 2002). "After years of legal battles, Tigua gambling ends". El Paso Times.   – via NewsBank (subscription required)
  35. ^ George Kuempel (August 24, 1996). "Kickapoo casino may spark legal battle". Dallas Morning News.   – via NewsBank (subscription required)
  36. ^ Ken Herman (May 23, 1998). "Kickapoo casino backers play their hand at Capitol". Austin American-Statesman.   – via NewsBank (subscription required)
  37. ^ Diamond Game Enterprises v. Reno, 230 F.3d 365 (D.C. Cir. 2000).
  38. ^ Mike Ward (November 14, 2004). "With a new casino, Kickapoos know firsthand the pleasure, perils of hitting it big". Austin American-Statesman.   – via NewsBank (subscription required)
  39. ^ Dianna Hunt (June 16, 1994). "Indians defeat plan for casino on reservation". Houston Chronicle.   – via NewsBank (subscription required)
  40. ^ James Kimberly (April 23, 2000). "Tribal Council ready to roll the dice". Houston Chronicle.   – via NewsBank (subscription required)
  41. ^ Shane Graber (November 27, 2001). "Despite warnings from AG, Alabama-Coushatta opens casino-like center". Beaumont Enterprise.   – via NewsBank (subscription required)
  42. ^ Karen Brooks (December 5, 2001). "As a court fight looms, gamblers fill the Alabama-Coushattas' new casino". Fort Worth Star-Telegram.   – via NewsBank (subscription required)
  43. ^ George Kuempel (November 22, 2001). "Tribe sues state over casino". Dallas Morning News.   – via NewsBank (subscription required)
  44. ^ Shane Graber (January 8, 2002). "AG urges shutdown of casino". Beaumont Enterprise.   – via NewsBank (subscription required)
  45. ^ Shane Graber (July 26, 2002). "Chairman vows to fight in Austin". Beaumont Enterprise.   – via NewsBank (subscription required)
  46. ^ Michael Freeman (March 18, 2012). "8-liners can rake in big illegal profit". Brazosport Facts (Clute, TX).   – via NewsBank (subscription required)
  47. ^ Patrick George (September 28, 2012). "Light penalties, elusive owners mean police struggle with illegal gambling rooms". Austin American-Statesman. Retrieved 2013-02-03. 
  48. ^ Tim Eaton (September 11, 2012). "Cracking down is hard to do on eight-liners, lawmakers say". Austin American-Statesman. Retrieved 2013-02-03. 
  49. ^ Todd J. Gillman; Tony Hartzel (December 12, 1993). "Bells, whistles... and sirens". Dallas Morning News.   – via NewsBank (subscription required)
  50. ^ Bruce Nichols (November 26, 1988). "Gambling cruises hailed as new industry for Texas". Dallas Morning News.   – via NewsBank (subscription required)
  51. ^ "State's lone cruise ship brings legal casino gambling". Victoria Advocate. AP. December 4, 1988. 
  52. ^ Collins Conner; Beth Glenn; Richard Verrier (June 22, 1998). "Tide turns for casino-boat operators". St. Petersburg Times.   – via NewsBank (subscription required)
  53. ^ Mark Toohey; T. Gregory Gillan (May 10, 1989). "Casino cruise ship hopes 'not sunk yet'". Houston Chronicle.   – via NewsBank (subscription required)
  54. ^ Clay Robison (August 27, 1989). "Passel of new laws to affect Texans". Houston Chronicle.   – via NewsBank (subscription required)
  55. ^ "Casino cruise ship takes first voyage". Victoria Advocate. AP. December 10, 1989. 
  56. ^ "Casino cruise delayed". Houston Chronicle. December 13, 1989.   – via NewsBank (subscription required)
  57. ^ Kevin Moran (December 21, 1990). "Cruise line seeking 'three-mile law' on gambling". Houston Chronicle.   – via NewsBank (subscription required)
  58. ^ Bruce Nichols (April 28, 1991). "Galveston fights to keep gambling ship afloat". Dallas Morning News.   – via NewsBank (subscription required)
  59. ^ "Sea Palace setting sail from Freeport". Houston Chronicle. January 27, 1991.   – via NewsBank (subscription required)
  60. ^ Bruce Nichols (March 8, 1992). "Galveston's gambling ship plans scuttled". Dallas Morning News.   – via NewsBank (subscription required)
  61. ^ John Toth (April 19, 1991). "Casino's investors are left high and dry". Houston Chronicle.   – via NewsBank (subscription required)
  62. ^ Kathryn Straach (November 21, 1993). "Bet on these new Galveston sailings". Dallas Morning News.   – via NewsBank (subscription required)
  63. ^ Robert Johnson (November 3, 1993). "Star of Texas opens: lots of family fun, three pools (and gambling)". Wall Street Journal.   – via Factiva (subscription required)
  64. ^ "Cruise line owes Galveston money". Victoria Advocate. AP. December 9, 1994. 
  65. ^ "Galveston board OKs return of offshore gambling casino". Amarillo Globe-News. AP. October 27, 1999. Retrieved 2013-01-24. 
  66. ^ a b Andrea Jares (May 26, 2000). "Casino ship has long history". Corpus Christi Caller-Times. Retrieved 2013-01-24. 
  67. ^ a b Form 10-QSB (Report). Surebet Casinos. September 30, 2001. http://www.sec.gov/Archives/edgar/data/1110654/000094935301500384/f10qst-093001.txt.
  68. ^ "Galveston casino ship stops service after month". Amarillo Globe-News. AP. May 17, 2001. Retrieved 2013-01-24. 
  69. ^ Steve Olafson (October 15, 2001). "Casino firm struggling against tide". Houston Chronicle.   – via NewsBank (subscription required)
  70. ^ Carlos Armintor (November 26, 2001). "Freeport 's newest casino boat sets sail". Brazosport Facts (Clute, TX).   – via NewsBank (subscription required)
  71. ^ Carlos Armintor (February 5, 2002). "Texas Treasure cashes in its chips". Brazosport Facts (Clute, TX).   – via NewsBank (subscription required)
  72. ^ Stephanie Murphy (June 23, 2002). "Cruising choices expand". Palm Beach Daily News.   – via NewsBank (subscription required)
  73. ^ Thomas R. Collins (October 10, 2002). "Larger gaming cruise arrives". Palm Beach Post.   – via NewsBank (subscription required)
  74. ^ Thomas R. Collins (February 6, 2003). "Gambling ship taking its dice elsewhere". Palm Beach Post.   – via NewsBank (subscription required)
  75. ^ Fanny S. Chirinos (April 22, 2009). "Ex-casino ship reported in India". Corpus Christi Caller-Times. Retrieved 2013-01-24.